In times of economic crisis, buying a house at an auctions can be a really advantageous opportunity.
At a judicial auction, properties owned by people or companies are sold who, unable to meet their debts, are forced to sell them to liquidate their creditors.
It is, therefore, possible to buy a house at a much lower price than the market price, usually with a saving of 20%.
But buying a house at auction can carry some risks.
If you are thinking of taking this step, I recommend that you read the information contained in this article carefully, in order to avoid unpleasant surprises.
The real estate auctions so allow the individual who has the best deal to be awarded at a competitive price a house that bears an executive or bankruptcy process.
Judicial real estate auctions: how do they work?
The judicial real estate auction takes place at the competent Court or at the office of an appointed professional.
The judge instructs a professional to draw up an appraisal that determines the value of the property.
In this document, it is possible to find a lot of information relating to the house in question, such as cadastral data, the floor plan, the technical and descriptive characteristics, the presence of any constraints, easements or building abuses, the presence or absence of an occupant.
So, if you have decided to buy a house at auction, it is essential to view the appraisal before deciding whether to participate in the real estate auction .
You can do this by going to the registry or, even on the internet, in the case of online judicial auctions.
After the appraisal, the judge issues the sales order, with which all the stages of the sales process are established:
– the starting price
– the method and date of the security deposit
– the closing date of the offers
– the date of the auction
– the date by which the purchase of the property must be paid.
The real estate auction must be advertised: this occurs with the publication of the sale notice – or auction notice – at least 45 days before the auction, today also via the internet on special sites and online auction portals.
During this time it is also possible to physically visit the auction house which is entrusted by the judge to a judicial custodian.
At this point, if you like the house, you can submit an offer.
Judicial real estate auctions: how to participate?
There are two ways to proceed with the tender for the purchase of a property at auction:
Auction without auction: the proposal is sent in a sealed envelope,
also containing a deposit equal to 10% of this offer and all other required documents. If there is only one offer, the property is awarded, unless the creditor disagrees with the proposed amount,
in which case it is awarded the same, but with an increase of 1/5 of the offer.
If there are more offers, a bid is held using the best proposal among those received as the starting point.
Auction with enchantment: you participate in the real estate auction by attaching the deposit indicated by the court. In this case, the rise starts immediately without evaluating any purchase proposal. The methods of increase are indicated by the court. When a house is won at auction, the successful bidder must pay the fee within the terms indicated in the notice of sale. At that point, the judge issues the transfer decree
with which he transfers the property to the buyer cancels the existing mortgages,
and, of course, takes the property away from the judicial custodian.
Buying a house at auction with a mortgage: can it be?
If you need a loan to buy at auction, I give you two good news: not only can it be done
and with mortgages up to 80% of the amount, but several banks such as Unicredit, CheBanca! , Cariparma and Bnl offer an ad hoc service for the purchase
through mortgage of properties subject to seizure, even financing up to 100% of the hammer
price of the property.
The procedure for buying a house at auction with a mortgage is very simple.
The bank initiates the investigation, with the stipulation of a preliminary loan. The disbursement of the credit takes place only if the applicant wins the tender, otherwise, the preliminary has no value.
In the event of a loan, the judge signs the transfer decree only after having received
the respective parts of the amount from the bank and the buyer, in addition to all ancillary costs.
The money is paid by the bank on average in 60 days.
Only then does he register the new mortgage.
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